Beruflich Dokumente
Kultur Dokumente
Selected Linear Financial Data in Millions of Dollars (Except Share Data), 19922003
June Fiscal Year
1992
1993
1994
1995
1996
1997
1998
1999
2000
Sales
119.4
150.9
49.5
57
200.5
265
377.8
379.3
484.8
506.7
705.9
67.6
83.3
106.8
109.8
137.8
139.8
12.3
14.8
179
18.4
23.9
31.1
35.4
46.2
54.7
78.3
-Other Expenses
19.1
23.3
28
29.4
36
29.6
29.6
26.5
31.4
38.5
55.7
86.5
128.5
203.9
204.5
271.3
285.7
417.3
13.5
19.3
29.7
43.8
69.9
70.2
90.4
91.4
129.4
Income Statement
Net Income
25
36.4
56.8
84.7
134
134.4
180.9
194.3
287.9
280.2
285.4
290.5
294.3
298.6
303.8
307.3
307.5
315.2
$0.09
$0.13
$0.20
$0.29
$0.45
$0.44
$0.59
$0.63
$0.91
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
5.3
8.3
9.8
11.9
15.0
18.3
22.1
28.0
$2.36
$3.61
$5.50
$8.25
$7.50
$12.94
$15.08
$33.63
$63.94
Dividend/Share
Dividend Yield
Dividend Payout Ratio
0
0
0
2002
2003a
972.6
512.3
440.8
231.1
144.7
114.6
102.5
79.8
67
28.4
9.4
18.9
610.7
278.4
240.3
183.2
80.7
69.7
427.5
197.6
170.6
318.9
316.2
312.4
$1.34
$0.63
$0.55
0.0
0.0
0.0
41.2
54.0
47.0
$44.22
$31.43
$30.87
Payout Policy:
1. The company started offering dividends right from 1994 and
always want to send a message that investing in Linear Technology
is not as risky as investing in any other technology company as it
pays dividend on regular intervals and provide constant flow of
income to shareholders (refer Pink colored cells in the adjacent
table).
2. Its idea is to offer dividends so as to attract new set of investors
who add diversity to the shareholders group.
3. Even though the company faced decline in sales in 2002 due to
slowdown, the company still increased the dividend per share and
exhibited that the company is in sound position.
4. The payout ratio reached to 25%-30%
Financing Needs:
1. The company is having excess cash flows to the tune of $1.5
Billion.
2. It is maintaining postive cash flows due to its variable cost
structure and low capital investment for fabrication units ($200
million), moderate R&D investment ($102 million) etc.
3. Company is not interested in going for acquisitions.
Owing to above reasons, the company can finance any of its
expenditure with its internal cash flows and short term
investments and need not depend on external institutes for
financing.
Question 2
Tax Consequences of Dividends (All figures are in $Million)
Outstanding Shares
New
Total Dividend Total Tax Paid
Dividend
Paid
312.4
0.04
12.496
1.8744
312.4
0.045
14.058
2.1087
312.4
0.05
15.62
2.343
312.4
0.055
17.182
2.5773
312.4
0.06
18.744
2.8116
Common Shares
Outstanding(millions)
1992
1993
1994
1995
1996
280.2
285.36
290.48
294.32
298.64
0.028463233 0.033419 0.039717
Dividend/Share
Total Dividend Paid
($ million)
Total Tax Paid on
dividend($ million)@
38.6%
0.018611578
5.311
8.268
9.836
11.861
2.050046
3.191448
3.796696
4.578346
0.79665
1.2402
1.4754
1.77915
Savings
1.253396
1.951248
2.321296
2.799196
1997
1998
303.84
307.28
0.049243 0.059607
1999
2000
2001
2002
2003a
(in Millions)
307.46
315.17
318.91
316.15 312.406
0.07183 0.088682 0.129077 0.170821 0.150509
14.962
18.316
22.085
27.95
41.164
54.005
47.02
5.775332
7.069976
8.52481
10.7887
15.889304
20.84593
18.14972
2.2443
2.7474
3.31275
4.1925
6.1746
8.10075
7.053
39.1167
3.531032
4.322576
5.21206
6.5962
9.714704
12.74518
11.09672
61.543608
100.660308
Exhibit 3
Linear Payout Policy, 1992-2003
Market Reaction
Fiscal Stock Re- Dividends
Quart Purchase Per Sharea
er
($M)
($)
Q1 93
0.00000
Q2 93
Q3 93
0.00625
0.00625
1.2
Stock
Splits
(Date)
2:1 (11/3)
Share
Pricea ($)
Sharesa
(M)
Dividendb
13-Oct
LLTC
SOX
Earningsb Returnc(%) Returnc(%)
2.70
281.3
14-Oct
-1.6
3.19
3.16
283.1
283.4
12-Jan
13-Apr
-1
11
20-Jul
-1.2
12-Oct
19-Jan
11.7
0.6
19-Apr
-4.1
17-Oct
18-Jan
18-Apr
2.2
4.7
1.8
0.5
-5
27-Jul
11.7
0.2
Q4 93
0.00625
3.61
285.4
Q1 94
Q2 94
0.00625
0.00750
4.28
4.84
294.1
287.7
0.00750
0.00750
0.00750
0.00875
0.00875
5.28
5.50
5.54
6.19
7.00
289.6
290.5
290.0
290.5
293.2
17-Oct
0.00875
8.25
294.3
25-Jul
10.38
9.81
295.2
296.3
17-Oct
17-Jan
14.3
10.6
7.3
3.6
16-Apr
-14.3
4.6
23-Jul
16-Oct
15-Jan
-1.4
-11
11.4
-5.8
-1.3
2.3
16-Apr
22-Jul
14-Oct
13-Jan
14-Apr
21-Jul
13-Oct
12-Jan
13-Apr
20-Jul
12-Oct
18-Jan
18-Apr
25-Jul
17-Oct
16-Jan
17-Apr
24-Jul
16-Oct
15-Jan
17-Apr
-2.3
8.3
5.4
6.6
13.3
-15.5
11.9
7.9
0.3
-10.7
-3.5
6.1
15.2
-2
-18.3
8.8
8.5
-11.3
-10.1
-1.1
4.9
-0.7
3.9
-4
6.4
6.8
-5
9
3.1
-6.2
-6.4
-1.4
-0.5
13.5
-4.5
-14.6
1
7.2
-3.6
-9.5
-6.5
3.7
Q3 94
Q4 94
Q1 95
Q2 95
Q3 95
0.5
0.8
6.1
Q4 95
Q1 96
Q2 96
3.5
0.01000
0.01000
Q3 96
5.0
0.01000
10.44
299.3
Q4 96
Q1 97
Q2 97
14.4
11.6
0.01000
0.01250
0.01250
7.50
9.22
10.97
298.6
297.5
299.5
0.01250
0.01250
0.01500
0.01500
0.01500
0.01500
0.01750
0.01750
0.01750
0.02000
0.02000
0.02000
0.02000
0.03000
0.03000
0.03000
0.03000
0.04000
0.04000
0.04000
0.04000
11.06
12.94
17.19
14.41
17.25
15.08
12.50
22.39
25.63
33.63
29.39
35.78
55.00
63.94
64.75
46.25
41.06
44.22
32.80
39.04
44.22
301.6
303.8
306.0
303.0
306.0
307.3
300.7
301.3
306.1
307.5
308.5
311.1
313.1
315.2
316.6
316.0
317.8
318.9
316.3
317.2
317.1
Q3 97
Q4 97
Q1 98
Q2 98
Q3 98
Q4 98
Q1 99
Q2 99
Q3 99
Q4 99
Q1 00
Q2 00
Q3 00
Q4 00
Q1 01
Q2 01
Q3 01
Q4 01
Q1 02
Q2 02
Q3 02
50.5
5.9
100.0
8.8
52.3
11.0
6.5
114.8
3.0
37.3
2:1(8/11)
2:1(1/29)
2:1(3/6)
12-Oct
23-Jul
23-Jul
21-Jul
13-Apr
18-Apr
17-Apr
16-Apr
Q4 02
Q1 03
Q2 03
66.5
125.0
1.5
0.05000
0.05000
0.05000
31.43
20.72
25.72
316.2
311.8
313.4
Q3 03
39.2
0.05000
30.87
312.4
23-Jul
15-Oct
14-Jan
0.5
4.3
-2.4
-2.9
-0.3
-4.2
Question 3
Repurchase
Dividend
1565.2
Tax paid
234.78
5.0102433
4.2587068
26.61
1330.42
1565.2
50.70294785
261.7
197.6
231.9
Calculation Steps:
1. The sales figure for the first half of 2003 was
$287million and that for the 3 quarters of 2003 is
$440.8million, thus we have the sales for the 3rd
quarter of 2003 as $440.8m-$287m=$153.8m.
2. If we have a 3% growth in the sales for the 4th
quarter then the sales will be 1.03*153.8=$158.4million.
Thus we have the total sales for the year 2003 as
$440.8m+$158.4m=$599.2million.
233.95
0.886139137
0.893972622
56.534
50.09698998
50.53984824
3466.4466
3582.3413
m appreciates by $3.44
e to appreciation of share
ice would appreciate.
ain same. EPS would
Exhibit 11
Data on Companies in the Semiconductor Index (SOX) in Millions of Dollars (Except Share Data), 2002
Company
Share
Ticker Pricea Shares (M) Net Income Cash Flowb
AMD
ALTR
AMAT
BRCM
INTC
KLAC
LLTC
LSI
MXIM
MU
MOT
NSM
NVLS
STM
TSM
TER
TXN
XLNX
6.18
13.54
12.58
12.35
16.28
35.94
30.87
4.52
36.12
8.14
8.26
17.04
27.27
18.90
6.84
11.64
16.37
23.41
344.5
383.5
1648.0
277.8
6575.0
189.8
316.2
375.1
320.1
602.9
2315.3
183.8
149.1
887.5
3703.2
183.2
1730.6
339.0
Compustat operating cash flow (Item 308) less capital expenditures (Item 128).
-1303.0
91.3
269.0
-2236.6
3117.0
216.2
197.6
-292.4
259.2
-907.0
-2485.0
-33.3
22.9
429.0
413.8
-718.5
-344.0
125.7
Cashc
-794.1 1037.7
237.8
942.7
75.1 4929.5
-144.4
502.7
4426.0 12587.0
215.4
673.3
1552.0
115.1
990.0
313.4
765.5
-181.8
985.7
732.0 6566.0
49.8
915.4
188.1 1019.7
718.0 2564.0
951.3 1113.0
-80.6
325.4
1190.0 3012.0
299.0
675.6
Long-Term
Debt
1779.8
0.0
573.9
1.2
929.0
0.0
0.0
1241.2
0.0
360.8
7674.0
19.9
0.0
2797.0
1701.7
450.6
833.0
0.0
0.0
0.0
0.0
0.0
533.0
0.0
54.0
0.0
0.0
0.0
364.0
0.0
0.0
36.0
0.0
0.0
147.0
0.0
0.0 Apr-95d
139.5
125.0
0.0
4014.0 Sep-92
123.2
221.6 Oct-92
0.0
864.0
2-Oct
0.0 Sep-91e
0.0 Nov-46
0.0
78.2
115.0 May-99
0.0
0.0
370.0 26-Apr
60.8
EPS
P/E
-3.782293179
0.238070404
0.163228155
-8.051115911
0.474068441
1.139093783
0.624920936
-0.77952546
0.809746954
-1.504395422
-1.073295037
-0.18117519
0.153588196
0.483380282
0.111741197
-3.921943231
-0.198774991
0.37079646
-1.63393
56.87393
77.07004
-1.53395
34.34103
31.5514
49.39825
-5.7984
44.60653
-5.41081
-7.69593
-94.0526
177.5527
39.09965
61.21288
-2.96792
-82.3544
63.13437
63.48408